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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532864 | NSE: NELCAST

Nelcast Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:14 pm

Market Cap 948 Cr.
Current Price 109
High / Low179/105
Stock P/E30.7
Book Value 61.3
Dividend Yield0.37 %
ROCE10.1 %
ROE8.05 %
Face Value 2.00
PEG Ratio0.77

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Nelcast Ltd

Competitors of Nelcast Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Intrux Ltd 161 Cr. 468647/23018.2 1793.63 %17.0 %12.3 % 10.0
Carnation Industries Ltd 4.86 Cr. 14.014.0/5.97 8.390.00 %%% 10.0
Captain Technocast Ltd 358 Cr. 351379/96.270.1 26.90.00 %19.4 %16.9 % 10.0
Nelcast Ltd 948 Cr. 109179/10530.7 61.30.37 %10.1 %8.05 % 2.00
Kirloskar Industries Ltd 4,734 Cr. 4,5476,699/3,17724.2 6,6430.29 %10.7 %5.41 % 10.0
Industry Average5,952.44 Cr1,040.3238.09808.170.64%19.43%14.17%7.00

All Competitor Stocks of Nelcast Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales238.01235.48267.92295.25328.52327.03313.18292.77358.34320.36295.47300.10330.42
Expenses225.41221.66250.91276.25301.57312.43294.36273.43326.56294.75279.92279.90309.05
Operating Profit12.6013.8217.0119.0026.9514.6018.8219.3431.7825.6115.5520.2021.37
OPM %5.29%5.87%6.35%6.44%8.20%4.46%6.01%6.61%8.87%7.99%5.26%6.73%6.47%
Other Income4.021.623.904.303.146.702.003.624.2919.914.254.286.32
Interest6.296.926.876.747.998.098.377.877.897.947.898.388.69
Depreciation5.675.695.665.685.796.086.465.885.866.406.005.916.10
Profit before tax4.662.838.3810.8816.317.135.999.2122.3231.185.9110.1912.90
Tax %27.68%26.86%19.33%28.58%25.57%25.25%25.04%22.04%25.45%18.09%14.38%21.88%23.95%
Net Profit3.362.086.767.7712.155.344.487.1816.6425.535.077.969.82
EPS in Rs0.390.240.780.891.400.610.510.831.912.930.580.911.13

Last Updated: November 12, 2024, 5:41 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 12, 2024, 5:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5085155455615757458565676159271,2641,2671,246
Expenses4754675004975106737805185698691,1841,1751,164
Operating Profit33494564647276484659809283
OPM %7%9%8%11%11%10%9%9%8%6%6%7%7%
Other Income22225461459163235
Interest3257637131726313233
Depreciation11131313131617192223242424
Profit before tax21363046495758311219406960
Tax %33%38%26%31%31%33%33%-17%26%25%26%21%
Net Profit1422223234383836914305448
EPS in Rs1.602.592.523.663.924.404.424.141.041.633.426.255.55
Dividend Payout %31%27%28%22%23%23%23%0%19%18%12%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)57.14%0.00%45.45%6.25%11.76%0.00%-5.26%-75.00%55.56%114.29%80.00%
Change in YoY Net Profit Growth (%)0.00%-57.14%45.45%-39.20%5.51%-11.76%-5.26%-69.74%130.56%58.73%-34.29%

Nelcast Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:8%
3 Years:27%
TTM:-3%
Compounded Profit Growth
10 Years:6%
5 Years:1%
3 Years:64%
TTM:-8%
Stock Price CAGR
10 Years:11%
5 Years:21%
3 Years:12%
1 Year:-37%
Return on Equity
10 Years:8%
5 Years:6%
3 Years:6%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 12, 2024, 5:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital17171717171717171717171717
Reserves234250264288322350378403413424451502516
Borrowings898998967798200225215280304329306
Other Liabilities100104108115130174187133195242256284289
Total Liabilities4414604875175466397827798409631,0281,1321,128
Fixed Assets198250254275271264318304455467459446447
CWIP486121012481031661413135668
Investments0000010000111313
Other Assets195204221232262326360309371482545617601
Total Assets4414604875175466397827798409631,0281,1321,128

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +429026472833753283-138019
Cash from Investing Activity +-49-22-22-30-10-44-125-63-18-32-23-31
Cash from Financing Activity +-8-18-6-16-17194427-512-71-38
Net Cash Flow-1650-1018-7-414-42-13-49

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-56.00-40.00-53.00-32.00-13.00-26.00-124.00-177.00-169.00-221.00-224.00-237.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days454947434857527397957487
Inventory Days59606910814111613019514912891124
Days Payable756457711049997122161145105139
Cash Conversion Cycle2845598085758414585776071
Working Capital Days454450567364539486866583
ROCE %11%9%14%13%14%12%7%5%7%10%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.87%74.87%74.87%74.87%74.87%74.87%74.87%74.87%74.87%74.87%74.87%74.87%
FIIs0.01%0.17%0.03%0.83%0.85%0.88%0.79%1.05%0.88%0.90%0.82%0.03%
DIIs0.24%0.24%0.24%0.63%0.64%0.58%0.58%0.58%0.48%0.48%0.48%0.00%
Public24.88%24.72%24.86%23.66%23.64%23.66%23.74%23.49%23.78%23.75%23.83%25.10%
No. of Shareholders29,25328,81128,69727,52428,77228,72528,37528,91528,56630,27830,01630,410

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.253.421.641.044.14
Diluted EPS (Rs.)6.253.421.641.044.14
Cash EPS (Rs.)9.036.184.233.546.27
Book Value[Excl.RevalReserv]/Share (Rs.)59.9954.1551.0849.7548.61
Book Value[Incl.RevalReserv]/Share (Rs.)59.9954.1551.0849.7548.61
Revenue From Operations / Share (Rs.)145.62145.28106.5970.2265.14
PBDIT / Share (Rs.)12.2510.987.765.896.76
PBIT / Share (Rs.)9.478.225.163.394.63
PBT / Share (Rs.)7.894.632.191.413.54
Net Profit / Share (Rs.)6.253.421.641.044.14
NP After MI And SOA / Share (Rs.)6.253.421.641.044.14
PBDIT Margin (%)8.407.557.278.3910.38
PBIT Margin (%)6.505.654.834.837.11
PBT Margin (%)5.413.182.052.015.43
Net Profit Margin (%)4.292.351.531.476.35
NP After MI And SOA Margin (%)4.292.351.531.476.35
Return on Networth / Equity (%)10.486.343.222.108.56
Return on Capital Employeed (%)12.3711.607.205.116.74
Return On Assets (%)4.802.891.471.074.60
Long Term Debt / Equity (X)0.180.210.310.240.33
Total Debt / Equity (X)0.630.640.630.420.50
Asset Turnover Ratio (%)1.171.271.030.750.72
Current Ratio (X)1.301.311.411.391.67
Quick Ratio (X)0.890.920.940.940.97
Inventory Turnover Ratio (X)3.383.993.562.201.65
Dividend Payout Ratio (NP) (%)6.398.7712.230.0029.13
Dividend Payout Ratio (CP) (%)4.434.854.720.0019.23
Earning Retention Ratio (%)93.6191.2387.770.0070.87
Cash Earning Retention Ratio (%)95.5795.1595.280.0080.77
Interest Coverage Ratio (X)3.373.062.612.976.19
Interest Coverage Ratio (Post Tax) (X)2.161.951.551.524.79
Enterprise Value (Cr.)1363.75976.33734.06682.05427.90
EV / Net Operating Revenue (X)1.080.770.791.120.75
EV / EBITDA (X)12.8010.2210.8813.307.27
MarketCap / Net Operating Revenue (X)0.880.610.550.920.46
Retention Ratios (%)93.6091.2287.760.0070.86
Price / BV (X)2.151.651.161.310.62
Price / Net Operating Revenue (X)0.880.610.550.920.46
EarningsYield0.040.030.020.010.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nelcast Ltd as of November 17, 2024 is: 152.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Nelcast Ltd is Undervalued by 39.50% compared to the current share price 109.00

Intrinsic Value of Nelcast Ltd as of November 17, 2024 is: 212.54

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Nelcast Ltd is Undervalued by 94.99% compared to the current share price 109.00

Last 5 Year EPS CAGR: 39.78%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (368.85 cr) compared to borrowings (185.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (493.62 cr) and profit (40.62 cr) over the years.
  1. The stock has a low average ROCE of 9.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 66.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 74.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nelcast Ltd:
    1. Net Profit Margin: 4.29%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.37% (Industry Average ROCE: 19.43%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.48% (Industry Average ROE: 14.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.16
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.89
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 30.7 (Industry average Stock P/E: 38.09)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.63
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Nelcast Ltd. is a Public Limited Listed company incorporated on 07/06/1982 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L27109AP1982PLC003518 and registration number is 003518. Currently Company is involved in the business activities of Manufacture of other iron and steel casting and products thereof. Company’s Total Operating Revenue is Rs. 927.34 Cr. and Equity Capital is Rs. 17.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Castings/Foundry34, Industrial Estate, Gudur Andhra Pradesh 524101nelcast@nelcast.com
http://www.nelcast.com
Management
NamePosition Held
Mr. D Sesha ReddyChairman
Mr. P DeepakManaging Director
Mr. A BalasubramanianDirector
Ms. Maheswari MohanDirector
Mr. R SridharanDirector
Mr. Vinod K DasariDirector
Ms. P DivyaDirector

FAQ

What is the latest intrinsic value of Nelcast Ltd?

The latest intrinsic value of Nelcast Ltd as on 17 November 2024 is ₹152.05, which is 39.50% higher than the current market price of ₹109.00.

What is the Market Cap of Nelcast Ltd?

The Market Cap of Nelcast Ltd is 948 Cr..

What is the current Stock Price of Nelcast Ltd as on 17 November 2024?

The current stock price of Nelcast Ltd as on 17 November 2024 is ₹109.

What is the High / Low of Nelcast Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nelcast Ltd stocks is 179/105.

What is the Stock P/E of Nelcast Ltd?

The Stock P/E of Nelcast Ltd is 30.7.

What is the Book Value of Nelcast Ltd?

The Book Value of Nelcast Ltd is 61.3.

What is the Dividend Yield of Nelcast Ltd?

The Dividend Yield of Nelcast Ltd is 0.37 %.

What is the ROCE of Nelcast Ltd?

The ROCE of Nelcast Ltd is 10.1 %.

What is the ROE of Nelcast Ltd?

The ROE of Nelcast Ltd is 8.05 %.

What is the Face Value of Nelcast Ltd?

The Face Value of Nelcast Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nelcast Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE